Beyond Borders: Global biotechnology report 2010

More documents

Recommendations

Info

Selected 2009 US biotechnology public company financial highlights by geographic area (US$m, percent change over 2008) Region Number of public companies Market capitalization 31.12.09 Revenue R&D 58 Beyond borders Global biotechnology report 2010 Net income (loss) Cash and equivalents Total assets Los Angeles/Orange County 14 60,596 15,211 3,266 4,128 3,221 41,330 -18% -7% -2% -8% 21% 42% 7% New England 45 51,654 11,827 4,108 320 3,113 26,091 -22% 3% -9% -16% -755% -26% 1% San Francisco Bay Area 62 59,950 11,754 3,380 1,184 3,891 20,422 -13% -60% -50% -49% -58% -59% -48% San Diego 35 23,624 5,811 1,617 (589) 1,838 15,888 -15% 36% 49% -2% -38% -9% 3% New Jersey 23 28,715 3,553 1,231 371 1,647 6,611 -18% 1% 18% -24% -115% 1% 5% Pennsylvania/Delaware Valley 12 8,435 2,808 704 (59) 2,731 7,024 -20% 0% 13% -8% -33% 135% 44% North Carolina 10 5,487 1,916 332 (51) 523 2,649 -9% 412% 343% 6% -75% 53% 193% New York State 22 6,284 1,271 733 (291) 643 3,026 -8% 10% 18% 6% -501% -13% 3% Mid-Atlantic 21 11,076 1,254 652 (123) 1,209 4,460 -5% 123% 37% -37% -80% 142% 38% Utah 3 2,798 437 109 42 111 875 50% -17% -10% -5% 162% -52% 13% Pacific Northwest 16 6,401 289 460 (599) 806 1,814 7% 302% 33% -9% -6% 234% 124% Southeast 17 2,289 216 204 (185) 342 697 -23% 23% -9% -24% -39% -13% -24% Texas 9 1,091 133 133 (133) 203 522 -10% -15% -3% -28% -6% 6% 2% Colorado 6 900 35 121 (205) 253 344 -33% -1% 22% -26% -16% 73% 15% Midwest 10 541 24 80 (123) 128 177 -9% -10% 55% -29% -20% -8% -16% Other 8 530 98 49 (13) 31 245 -20% 2% -43% -26% -1445% -30% -5% Total 313 270,371 56,637 17,179 3,675 20,688 132,174 -14% -21% -13% -24% 782% -13% -6% Source: Ernst & Young and company financial statement data Percent changes refer to change over December 2008. Some numbers may appear inconsistent because of rounding. New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Mid-Atlantic: Maryland, Virginia, District of Columbia Southeast: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Tennessee, South Carolina Midwest: Illinois, Michigan, Ohio, Wisconsin Pacific Northwest: Oregon, Washington
together improved their net income by about US$1 billion, as well as up-andcoming firms such as Human Genome Sciences and Jazz Pharmaceuticals. Europe Like their US-based counterparts, European biotech companies demonstrated considerable resilience in the economic downturn. The number of public companies decreased by only 4%, from 179 companies in 2008 to 171 in 2009 — a much smaller drop than most industry watchers had expected. Revenues of publicly traded European companies grew from €11.0 billion in 2008 to €11.9 billion in 2009 — an 8% increase that was well below the 17% growth seen in 2008. While several of Europe’s leading companies — including Actelion, Crucell, Elan, QIAGEN and Meda — continued to post double-digit revenue growth rates, UK-based Shire saw a significant slowdown on its top line. This was largely the result of the introduction of generic competitors to Adderall XR, its blockbuster drug for treating attention deficit hyperactivity disorder. Excluding Shire, Europe’s other large companies — those with revenues greater than €200 million — saw their combined top line expand by a robust 14%. However, smaller public companies below the €200 million threshold saw revenues decline by 1%, dragging down the overall sector’s performance. As in the US, R&D expenditures failed to keep pace with revenue growth. European public companies’ R&D expenditures were essentially flat, posting a modest 2% decrease in 2009. This was driven not by a few large companies, but rather by R&D cutbacks across much of the industry. Similar to the situation in the US, close to 60% of public companies reduced their R&D expenditures in 2009. US biotechnology at a glance, 2008–09 (US$b) Public company data Ernst & Young survival index, 2008–09 2009 2008 % change Product sales 48.2 53.9 -11% Revenues 56.6 65.1 -13% R&D expense 17.2 22.6 -24% Net income (loss) 3.7 0.4 782% Market capitalization 270.4 340.7 -21% Number of employees 109,100 120,300 -9% Financings Capital raised by public companies 13.5 8.6 58% Number of IPOs 3 1 200% Capital raised by private companies 4.9 4.4 10% Number of companies Public companies 313 366 -14% Private companies 1,386 1,405 -1% Public and private companies 1,699 1,771 -4% Source: Ernst & Young Data were generally derived from year-end information (31 December). The 2009 data are estimates based on January—September quarterly filings and preliminary annual financial performance data for some companies. The 2008 estimates have been revised for compatability with 2009 data. Numbers may appear inconsistent because of rounding. US Europe Canada 2009 2008 2009 2008 2009 2008 More than 5 years of cash 30% 20% 45% 28% 22% 19% 3–5 years of cash 8% 5% 11% 7% 5% 4% 2–3 years of cash 8% 11% 7% 13% 5% 0% 1–2 years of cash 18% 20% 12% 14% 17% 19% Less than 1 year of cash 36% 44% 25% 37% 51% 57% Source: Ernst & Young and company financial statement data Chart shows share of public companies in each location. Numbers may appear inconsistent because of rounding. The cost cutting helped boost the sector’s net income by a remarkable 68%, as combined net loss fell from €913 million in 2008 to only €288 million in 2009. Out of this €625 million improvement on the bottom line, €147 million came from the decrease in public company count, since most of the companies that ceased operations or were acquired during the year were in a net loss position. Despite slowing revenue growth, Shire was able to deliver strong growth on the bottom line, and a number of other companies — including Genmab, Meda, Photomed, Q-Med and QIAGEN — posted strong increases in net income. 59
Page 1:
Beyond borders Global biotechnology
Page 4 and 5:
Contents The new normal: the global
Page 6 and 7:
The new normal
Page 8 and 9:
Global introduction The new normal
Page 10 and 11:
Of course, this is not a novel deve
Page 12 and 13:
“Since by definition, increasing
Page 14 and 15: In both of these models, investors
Page 16 and 17: “For most of the history of the b
Page 18 and 19: A closer look Reforming US health c
Page 20 and 21: Perspectives for the new normal Foc
Page 22 and 23: Perspectives for the new normal Suc
Page 24 and 25: John Maraganore of Alnylam Pharmace
Page 26 and 27: Perspectives for the new normal The
Page 28 and 29: Using FIPNet to supercharge the inn
Page 30 and 31: New opportunities 24 Beyond borders
Page 32 and 33: Conversation on emerging markets Ne
Page 34 and 35: “The biggest challenge for Wester
Page 36 and 37: China year in review Accelerating r
Page 38 and 39: addition, the Government committed
Page 40 and 41: In 2009, overseas-listed Chinese bi
Page 42 and 43: India year in review Preparing for
Page 44 and 45: acquired US-based hybrid sorghum se
Page 46 and 47: Japanese biotech IPOs, 2009 Company
Page 48 and 49: drug application for Lurasidone to
Page 50 and 51: The year saw some examples of globa
Page 52 and 53: of today’s increasingly pragmatic
Page 54 and 55: Biotech will provide the technology
Page 56 and 57: Malaysia year in review A strategic
Page 58 and 59: A transformational year 52 Beyond b
Page 60 and 61: Financial performance A transformat
Page 62 and 63: explained by developments at a few
Page 66 and 67: Growth rate Canada Behind the numbe
Page 68 and 69: Australian biotechnology at a glanc
Page 70 and 71: Financing A higher bar After a dism
Page 72 and 73: the pharmaceutical industry, as pha
Page 74 and 75: The final 2009 IPO to close in the
Page 76 and 77: The IPO market in Europe remains la
Page 78 and 79: Capital raised by Canadian province
Page 80 and 81: developed countries — and whether
Page 82 and 83: Deals A new landscape Given the rea
Page 84 and 85: companies will not make any large u
Page 86 and 87: with Elan (the judge agreed) the pa
Page 88 and 89: Without Roche-Genentech, the value
Page 90 and 91: total potential value of these tran
Page 92 and 93: Products and pipeline Steady growth
Page 94 and 95: FDA product approvals, 1996-2009 Nu
Page 96 and 97: European Phase III pipeline by indi
Page 98 and 99: A closer look Uncertain by design:
Page 100 and 101: oral anti-diabetes medications Janu
Page 102 and 103: Perspectives on personalized medici
Page 104 and 105: Moderated by: Gil Forer Ernst & You
Page 106 and 107: “I’m starting to see non-tradit
Page 108 and 109: from infrastructure funds, but they
Page 110 and 111: Data exhibit index 2 The not-quite-
Page 112 and 113: Global biotechnology contacts Globa
Page 114:
Ernst & Young thought leadership Wa
show all

Beyond Borders: Global biotechnology report 2010

Create successful ePaper yourself

Delete template?

Save as template?